Freshfields advises on the Malta LNG-to-power project
Freshfields Bruckhaus Deringer LLP (‘Freshfields’) has advised the lenders on all aspects of the financing for the liquefied natural gas-to-power (‘LNG-to-power’) project in Malta. The total project value is over €500m, with over €400m of financing being provided by the lenders.
The bridge financing closed in 2015 with KfW-IPEX, Societe Generale, HSBC and Bank of Valletta, and these lenders were joined in the long-term financing by Natixis, DZ Bank, CIC, BNP Paribas and with funds managed by Rivage. The sponsors were Siemens AG, Socar Trading and GEM Holdings.
This is the first internationally project-financed transaction in Malta, and the first successfully project-financed LNG-to-power plant in the EMEA region. The plant will provide a reliable source of power to meet the country’s energy needs for the next two decades and will reduce Malta’s carbon emissions by replacing outdated generation assets.
LNG will be supplied to the project by Socar Trading S.A. using cargoes from Shell, with the possibility to connect the plant to a gas pipeline from Italy in the future. The project will sell electricity and gas to the Maltese state utility Enemalta under a 17 year offtake agreement, which is being guaranteed by the Government of Malta.
The Freshfields team was led by partners Alan Rae Smith and Tim Pick and supported by senior associate James Chapman.
Notes for editors
About Freshfields Bruckhaus Deringer LLP
Freshfields Bruckhaus Deringer LLP is a global law firm with a long-standing track record of successfully supporting the world's leading national and multinational corporations, financial institutions and governments on ground-breaking and business-critical mandates. Our 2,800 plus lawyers deliver results worldwide through our own offices and alongside leading local firms. Our commitment, local and multi-national expertise and business know-how means our clients rely on us when it matters most.